ZHULIAN (TP RM3.77– BUY) Initiating Coverage: Strong but Undervalued Jewel
Riding on its reputation as a costume and fine jewelry producer, the group has grown into a regional MLM company with a broad product range. Targeting the Bumiputra market in multiracial and multilingual Malaysia, the group is poised to tap the potential in Malaysia, Singapore, Thailand and Indonesia. We are forecasting a 2-year revenue and earnings CAGR of 19.8% and 27.8% for the next 2 years and initiate coverage on the stock with a BUY call at a TP of RM3.77 (based on 12x FY10 EPS). Despite its strong fundamentals, the stock is trading at some 30% discount to the industry’s forward PE. Zhulian is the highest dividend yield stock in the industry.
By OSK Research
2 comments:
It is remarkable, this rather valuable opinion
I have bought Zhulian shares almost 1 month now BUT it has been dropping more than 10cents ??? I wished that the share could rise up to at least $2.00 instead of dropping like flies without any improvement. They said it is good MLM company BUT the price of the share is heading SOUTH?
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